Strata insurance explained

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What is strata insurance?

Strata insurance is a form of general insurance that is intended to meet the specific insurance requirements of the Owners Corporation in relation to their strata scheme.

Strata insurance policies should be in the name of the Owners Corporation responsible for the strata scheme – e.g. Strata Plan 12345.

Generally, strata insurance will be sold in an insurance ‘package’ that covers numerous types of insurance cover, to suit the unique needs of a strata scheme.


What does strata insurance cover?

Strata Insurance varies across different insurers and different states. A comprehensive strata policy aims to provide cover on behalf of the owners corporation for:

  • property damage to strata “buildings” (for the structural items of a strata scheme)
  • public liability cover for loss or injury caused by the strata scheme to others.

Different strata insurance policies may also include additional and optional covers, including:

  • fidelity guarantee
  • voluntary workers liability
  • office bearers liability
  • workers compensation liability
  • legal expenses
  • government audit costs
  • workplace health & safety audit breaches,
  • lot owners improvements,
  • machinery breakdown.


What does strata insurance not cover?

Strata insurance provides cover for the property & responsibilities of the owners corporation.

Typically, strata insurance will not provide cover for:

  • property damage to items not owned by the Owners Corporation,
  • public liability cover for loss or injury caused by anyone other than the strata scheme.

as these items are generally not the responsibility of the owners corporation to insure.

Cover provided will vary between each strata insurer. Each policy wording will have different policy exclusions, terms and conditions.

It is very important to read your strata insurance policy wording to ensure you have a good understanding of what is and is not covered.


Is strata insurance compulsory?

Yes, but….

Generally speaking, strata insurance is compulsory under all state-based strata legislation however some legislation will allow for exceptions to this rule in very specific circumstances.

Refer to the relevant strata legislation in your state to determine what insurance requirements apply to your strata scheme.


General Advice Warning:

In accordance with the Corporations Act we are obliged to provide you with a General Advice Warning as we have provided you with General Advice. This warning complies with the requirements as set out in the Corporation Act.

The advice has been prepared without taking account your objectives, financial situation or needs.

Before acting on the advice, you should consider how appropriate it may be, having regard to your objectives, financial situation and needs


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